Granting of salary hikes for public servants has destabilizing impact on bourse

By Hiran H.Senewiratne

The stock market yesterday started off in a rather volatile manner due to certain government decisions, such as the granting of salary increases for government servants, thus, creating some worries for investors.Amid those developments both indices moved downwards. The All Share Price Index went down by 101.97 points, while S and P SL20 declined by 36.61 points.

The turnover stood at Rs 1.1 billion with six crossings. Those crossings were reported in Malwaththa Valley Plantation, which crossed 6.7 million shares to the tune of Rs 422 million; its shares traded at Rs 63, Ambeon Holdings four million shares crossed for Rs 152 million; its shares traded at Rs 38, NDB Bank 796,000 shares crossed for Rs 4.9 million; its shares traded at Rs 69, Kelani Tyres 458,000 shares crossed for Rs 30.6 million and its shares fetched Rs 80, Access Engineering 1.1 million shares crossed for Rs 23.8 million; its shares sold at Rs 21.7 and Hayleys 250,000 shares crossed for Rs 23.5 million; its shares were priced at Rs 94.

In the retail market top six companies that mainly contributed to the turnover were; HNB Rs 77.6 million (430,000 shares traded), JKH Rs 53.2 million (295,000 shares traded), Hemas Holdings Rs 39.3 million (392,000 shares traded), NDB Rs 28.7 million (460,000 shares traded), Kelani Tyres Rs 20.7 million (26,000 shares traded) and Hayley’s Fabrics Rs 18 million (373,000 shares traded). During the day 34.9 million share volumes changed hands in 6468 transactions.

It is said that Banking sector counters performed well while Plantation sector counters were the highest turnover contributor.

Yesterday, the rupee opened at Rs 300.90/301.10 to the US dollar, dealers said. Bond yields were steady, they said, and stocks opened down at 0.05 percent.

The rupee closed at Rs 300.80/301.30 to the greenback on the previous day.

In the secondary market, bonds were stable, dealers said. A bond maturing on 15.12.2026 was quoted stable at 11.00/15 percent. A bond maturing on 01.07.2028 was quoted stable at 12.45/60 percent. A bond maturing on 15.06.2029 was quoted at 12.80/55 percent. A bond maturing on 15.05.2030 was quoted at 12.95/13.05 percent, from 12.85/13.05 percent.